Why Camping World Holdings Surged 84.1% in 2020

What happened

Shares of Camping World Holdings (NYSE: CWH) soared 84.1% in 2020 as the coronavirus pandemic caused people to get back to nature and away from the crowds.

So what

The "escape to the wilderness" mindset pushed new and used RV sales 16% higher through the first nine months of the year, leading Camping World to post a $304 million profit for the year, a turnaround from a net loss of $39 million in 2019.

An RV parked amid the mountains

Image source: Getty Images.

The success Camping World enjoyed also allowed investors to share in the growth as the RV retailer and lifestyle advocate showered its shareholders with a three-part dividend.

Camping World's unique dividend structure has a regular portion of $0.09 per share and what it calls a recurring portion of $0.14 per share, to which it added a special one-time dividend of $0.77 per share for a total of $1 per share in 2020.

CWH Chart

CWH data by YCharts

Now what

The RV retailer is using the gains it made this year from consumers' changed perspective on the great outdoors to build additional opportunities for growth by expanding into new markets through a growth-by-acquisition strategy.

The RV Industry Association says industry sales grew in 2020 at a pace not seen in 40 years and it expects 2021 to see growth of 21%. But can that sort of pace be maintained once the economy normalizes and travel and tourism return? It could be that the vigor people adopted the RV lifestyle during the crisis will fade like the commitment of a New Year's resolution to get in shape.

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Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Camping World Holdings. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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